The Federal Reserve has raised its benchmark rate 11 times between March 2022 and July 2023, causing money market account interest rates to rise sharply. However, the Fed recently slashed the federal funds rate by 50 basis points in September and another 25 basis points in November, leading to a sharp decline in deposit rates.
Despite the national average money market account rate of just 0.60%, top high-yield accounts offer APYs over 5%. To maximize earnings, it’s essential to compare rates and shop around. Online banks and credit unions often provide competitive offers.
Top High-Yield Money Market Accounts:
1. Zynlo Money Market Account: 5.00% APY
2. TotalBank Online Money Market Deposit Account: 4.86% APY (on balances of $2,500 and up)
3. Brilliant Bank Surge Money Market Account: up to 4.85%
4. VIO Cornerstone Money Market Savings Account: 4.77% APY
5. Quontic Bank Money Market Account: 4.75% APY
6. First Foundation Bank Online Money Market Account: 4.75% APY
7. Prime Alliance Bank Personal Money Market Account: 4.50% APY
Online banks are often the best option for high-yield money market accounts due to lower overhead costs, which they pass on to customers in the form of higher deposit rates and lower fees. However, credit unions also offer competitive rates, although membership requirements may apply.
Before opening a money market account, consider your needs:
* You want to earn more interest than a regular savings account.
* You can maintain the minimum balance to avoid fees.
* You need easy access to funds for emergencies or near-term expenses.
By choosing the right high-yield money market account and meeting the necessary requirements, you can maximize your earnings while keeping your money easily accessible.
Source: https://finance.yahoo.com/personal-finance/article/money-market-account-rates-today-110046392.html